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CA continues to lag US in MFG growth, LA county even worse

Posted by Gino DiCaro, VP, Communications on Oct. 1, 2018

Manufacturing’s vital contributions to the California economy are far out of proportion to its shrinking share of employment. 

California’s manufacturing sector boasts $87k average wages (2017), more than $288 billion in output (2017), a higher share of workers without a college degree than economy overall, and tremendous economic ripple effects from long supply chains and economic activity.

California is still the largest manufacturing state in the country with more than 1.3 million workers but given the state’s size, that doesn’t tell the whole story.  

With all of the benefits California reaps from manufacturing, it remains that the state simply is not keeping pace with the national resurgence. This is evident in California manufacturing job growth, investment growth and reshores as a percentage of the the rest of the country.  Manufacturing job growth in particular shows a 5 percent increase since 2010 in California, while the country grew at more than 11 percent. Further some of the regions that need manufacturing opportunities the most are seeing dismal manufacturing growth rates (See L.A. in chart). We simply can and must do better.

Costs and predicability are often the largest challenges for manufacturers to make long-term investment decisions in California. Electricity rates alone are 86 percent higher for the industrial class and 49 percent higher for the commercial class. Workers' compensation premiums are the highest in the nation. California-specific laws that pop up every year often make it difficult to understand if a manufacturer can compete long-term in the state. These challenges and more have created an environment that makes it difficult for California’s robust innovation and R&D to scale up actual manufacturing facilities in the state.

CMTA continues to present these facts to the Legislature and the media and we hope you can join us in telling the tremendous story of manufacturing benefits and opportunities, as well as the challenges of competing in California.

Below is an updated chart of manufacturing growth, with the percentage for the state's largest manufacturing region -- LA -- included.

(click image for larger pdf)

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CMTA takes positions on 2 Fall initiatives that impact manufacturers

Posted by Dorothy Rothrock, President on Sept. 7, 2018

The November 2018 ballot includes 12 measures for voters to consider. CMTA has taken a position on two of the measures, recommending that voters support Proposition 3 to issue a bond for the financing of water projects and oppose Proposition 10 to expand local governments’ authority to impose rent control ordinances. Each measure will have an impact on California manufacturing jobs and investments, as described here:

Proposition 3 creates an $8.87 billion general obligation bond to finance projects related to water, storage, conservation, quality and watershed protection and maintenance. During the recent multi-year drought in California, manufacturers were able to maintain operations by embracing water conservation, recycling and reuse practices. Despite these best efforts, as the economy and population grows in the coming years, the demands for water will increase and our ability to serve all residential, commercial, agriculture and manufacturing needs will be stretched. This funding, with the specific inclusion of storage and supply related projects, will help keep water flowing to maintain manufacturing projects and jobs for the long term. CMTA Supports Proposition 3

Proposition 10 repeals existing law and would allow local governments to impose rent control on previously exempt properties. High housing costs are a challenge for manufacturers who need skilled workers near plants and facilities, but imposing rent control is the wrong way to go. In fact, it is likely that rent controls would reduce the supply and availability of housing, encourage investments in other types of development, and ultimately increase prices. We should be asking our state legislators to work on more sensible and effective ways to increase the supply of housing and make rents and home purchases affordable for California families. CMTA Opposes Proposition 10

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CMTA in the field to promote MFG at four big events

Posted by Gino DiCaro, VP, Communications on Sept. 1, 2018

This is the time of the year -- after the Legislature has closed down for the session and before the holiday months ensue -- that provides a perfect opportunity for CMTA to go out into the field to promote the benefits of California manufacturing and some solutions to the sector's challenges.  

Among many events, there are four particular gatherings, for which CMTA'ers are participating, that should be of interest to manufacturers in their respective regions:


1. The Industrial Association of Contra Costa County Forum - "New Regulatory Climate: An Industry Leadership Perspective"

CMTA's Dorothy Rothrock will join Western States Petroleum Assn. President Cathy Reheis Boyd to discuss the implementation of AB 617, which is a bill that resulted from the 2017 cap and trade negotiations to further reduce air pollution in local air districts. Lots of industry from the East Bay will be on hand to discuss how to ensure CARB's proper implementation of the policy.

The forum will take place at Zio Fraedos Restaurant at 611 Gregory Lane, Pleasant Hill, CA.

Tuesday, September 11, 11:30 am to 1:30 pm



2. CALMatters panel on climate change - "California is a Global Model for Climate Policy"

CMTA's Michael Shaw is a panelist joining former State Senator Fran Pavley and John White, Executive Director for the Center for Energy Efficiency & Renewable Technologies, (and other TBD's) to discuss what has worked and what hasn't in California's ambitious climate change policies. 

The event will take place at the Public Policy Institute of California 500 Washington St, Bechtel Conference Center (1st Floor) San Francisco, CA 94111

Wednesday September 12, noon to 1:30 pm



3. IEA / CMTA 34th Annual Environmental Training Symposium and Conference - "Strategies for Success on California's Environmental Frontier"

CMTA's Dawn Koepke is a featured speaker, presenting on some of California's specific environmental regulatory requirements facing manufacturers.  There are many panels to see at this great annual conference co-hosted by CMTA.

The two-day conference will take place at the San Diego Convention Center at 111 West Harbor Drive, San Diego, CA 92101

Thursday, Sept 27 to Friday, September 28



4. The Ventura County Economic Development Assn. Business Outlook Conference - "Accelerating Value Creation: The Future of Manufacturing, Technology and Innovation in Ventura Co."

CMTA's Gino DiCaro will join other speakers and present the State of California Manufacturing, as well as some of CMTA's efforts in the State Capitol to address the challlenges of new manufacturing investment in California.

More than 200 attendees will attend the conference at the Ronald Ronald Reagan Library in Simi Valley.

Friday, October 5 at 7:30 am 


** Coincidentally this event is happening on National Manufacturing Day (MFGday) and is a great way to further promote the tremendous benefits manufacturing brings to California's economy and working families

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ICYMI - Rothrock in the Sac Bee on connecting CA education to advanced workforce needs

Posted by Gino DiCaro, VP, Communications on July 30, 2018

In case you missed it last week, CMTA President Dorothy Rothrock wrote a piece for the Sacramento Bee, outlining just how important it is for California to pick up the pace of its severely neglected career and technology education (CTE) system in our middle and high schools. The combination of a lack of CTE, a technology explosion in manufacturing processes and rapid retirements of baby boomers -- to the clip of 10,000 a day nationally -- is perhaps creating the single most important challenge for manufacturers in California. Rothrock has received many emails of support since the article ran and will be doing a follow up piece on what she's hearing from the community.  See her piece and link to the full Bee article below.

If California wants a skilled workforce, why let career technical education go away?

by Dorothy Rothrock in The Sacramento Bee 

California is justifiably proud of its technologically advanced and diverse manufacturing economy. But the future is at risk if we don’t have a skilled workforce for these high-wage jobs.

California manufacturers already struggle to fill open positions, and the nationwide “skills gap” of unfilled jobs is estimated to reach 2 million by the year 2025. Sadly, the state is not doing enough to fill the pipeline of workers manufacturers will need in the years to come.

Part of the problem is a public education system that has been neglecting career and technical education, or “CTE”, for many decades. In 1987 nearly 74 percent of California high school students participated in at least one CTE class, but by 2009 this had fallen to a paltry 29 percent  

In 2011 alone, the state Department of Education reported that the number of CTE instructors dropped by some 20 percent from the year prior. Instead of acknowledging the crisis, the department decided to disavow their own report and stopped producing similar annual statistics on CTE, sweeping the disturbing trends under the rug ... READ MORE ON SAC BEE


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Update on CA MFG job growth vs. the country

Posted by Gino DiCaro, VP, Communications on July 16, 2018

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